High productivity generally refers to the high output per hour. In fact, high productivity is the increased volume of production above the standard or expected volume of the industry.
An organization can be benefited from high productivity, let’s know the benefits of high productivity.
Benefits of High Productivity
1. Least cost of the product: High productivity reduces labor cost & materials cost per unit of product.
2. Competitive advantages: It makes the company more enable to compete with competitors in the market because of the low cost of production. With this, it can gain competitive price advantages over competitors.
3. Increased sales volume: Sales volume will be increased at a higher rate through high productivity and low cost.
4. Increased Profit: High productivity results in more production which leads to more sales and by which profit will be increased.
5. Reserve fund: From the excess profit reserve fund can be created to meet future uncertainty.
6. Resource utilization: Resources can be utilized properly that are unutilized labor machine capacity can be used and other sunk costs will be reduced.
7. Customer satisfaction: By meeting customers’ needs and/or demand on time or early customer satisfaction can be achieved.
8. Increased earnings: Earnings of the employees will be raised through salary increase and employer’s earnings will be too through getting more profits.
9. Economic contribution: By paying more for more profit and contributing to GDP it can help to foster the economic growth of a country.
10. Export promotion: Excess products can be exported to another country which will bring more foreign currency.
11. Increased living standard: As earnings increase of the employees and the stakeholders it will lead them to more standard living conditions.
12. Organizational expansion: High productivity may lead to organizational expansion.
13. Environment opportunity: Organizational expansion will need more employees through which more employment opportunities will be created.
14. Bonus facilities: Employees will get benefits through bonuses and other intrinsic and extrinsic rewards for their high productivity.
15. Confidence & skills: Employee confidence and skills will be raised through regular production.
16. Organizational commitment: As employee are more involved in their jobs and gets more facilities, they will be more committed to their jobs.
17. Labor productivity: If any labor shortage arises in the market, the company may not suffer, and it can be benefited by utilizing its high productivity.
So it can be said that through high productivity employers, employees, other related groups, and the nation can be benefited.
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